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Law and Economics of Oil and Gas, MSc

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Introduction

Our unique Masters programme combines the disciplines of Economics and Law to equip students with the necessary economic and legal skills required for a successful career in the oil and gas industry or governmental organisations.

This programme is studied on campus.

We recognise that the global oil & gas sector has evolved in a complex environment characterised by various influential factors such as; government-controlled hydrocarbons, financial markets, the global crude oil market, economic uncertainty, licensing, taxation and contracts. These crucial factors bear significant influence on decision making in projects and government policies, therefore a comprehensive knowledge of the relative economics and law is essential.

The University of Aberdeen is an established leader in teaching and research in the field of energy and our new MSc builds on our considerable strengths in these areas. Given the success of the existing relative programs such as the MSc Petroleum, Energy Economics and Finance, LLM International Commercial Law and LLM in Oil and Gas and Energy and the profile of energy specialists in the University, we can clearly claim to be experts in these fields.

Students will benefit from interacting with world leading researchers in the field of energy economics and law such as, Professor Alex Kemp OBE, and from access to the Aberdeen Institute of Energy, powered by the University and our strong links with industry and policymakers.

We draw a highly distinctive mix of students, spanning both nationalities and disciplines. So you will be encouraged to look at energy business challenges from across disciplines, with an integrated perspective.

Our MSc in Law and Economics of Oil and Gas is intellectually challenging and provides career-ready credentials to help increase your employability in legal and financial oil and gas contexts.

Semester 1

Compulsory Courses

This course ensure students understand why companies behave the way they do with respect to financing choices and how this interacts with financial markets, with particular reference to the petroleum and energy industries. The course covers Investment Appraisal Techniques Employed in Petroleum Industry, Risk Analysis, Portfolio Theory and the Capital Asset Pricing Model (CAPM)

This course discusses the world petroleum market in the context of overall energy markets. The main features of the evolving petroleum market are analysed including examination of the Hotelling model and Hubbert curve. Oil price determination is discussed with detailed consideration of the special characteristics of the demand and supply curves in the industry. The role of OPEC in the market is examined, including discussion of the various models of OPEC behaviour and the determinants of its market power. The economics of climate change and the place of renewable energy in the wider energy market is discussed.

Students will gain an understanding of what financial information is for and how it is controlled by government, the stock exchanges and other institutions. Students will explore financial accounting assumptions and conventions. They will develop their technical knowledge and skills to enable them to record business transactions and prepare financial statements. Finally, students will be introduced to financial statement analysis and the calculation of key metrics. This will allow them to explore how accounting information is used by stock market participants and the impact on users of current developments and issues in accounting practice, governance and standards.

Semester 2

Compulsory Courses

The goal of this course is to deepen and broaden students' understanding and develop their analytical skills regarding investment decisions under uncertainty and the value of flexibility and information. The course will introduce relevant concepts from economics and finance such as decision trees, the Black-Scholes equation and the binomial option pricing model and discuss how these concepts may be applied to assess investments with applications related to the energy industry such as the development of an oil lease.

Much of this course is devoted to petroleum policies. Concepts of economic rents from petroleum exploitation and the various mechanisms by which the rents can be collected by the state are discussed, including production sharing and service contracts. Licensing policies, including relinquishment terms, pricing, procurement, domestic market obligations, the role of state oil companies, and depletion policy are examined. The Oil Fund concept and the issue of oil and gas security of supply are discussed. State and private ownership and control of gas acquisition, transmission and distribution to customers are examined. The economics of CO2 capture and storage is discussed.

Interested in this Degree?

Entry Requirements

Qualifications

The information below is provided as a guide only and does not guarantee entry to the University of Aberdeen.

The minimum entry requirements for this programme is a degree at 2:1 (upper second class) UK Honours level (or a degree from a non-UK institution which is judged by the University to be of equivalent worth).

English Language Requirements

To study for a Postgraduate Taught degree at the University of Aberdeen it is essential that you can speak, understand, read, and write English fluently. The minimum requirements for this degree are as follows:

Document Requirements

You will be required to supply the following documentation with your application as proof you meet the entry requirements of this degree programme. If you have not yet completed your current programme of study, then you can still apply and you can provide your Degree Certificate at a later date.

Degree Transcript

a full transcript showing all the subjects you studied and the marks you have achieved in your degree(s) (original & official English translation)

Our Funding Database

Careers

Our MSc in Law & Economics of Oil and Gas will build your expertise and grow your contacts. Upon completion, you will be equipped with the intellectual, critical and practical skills that are fundamental to successful careers in the area of oil and gas. Career opportunities range from positions with oil and gas companies, with international law firms servicing the industry and also with government ministries.

Equally, you can choose to use the programme as a step towards your PhD and beyond that, to work in the academic world. As Law and Economics touch so many parts of public life, they have become well regarded as stepping-stones should you perhaps wish to enter politics, business, international finance or banking. Employers are increasingly valuing the transferable skills graduates can bring to industry and other international business organisations, skills that include research, critical thinking, problem solving, effective communication, and diplomacy.

Career Opportunities

Commercial Adviser

Energy and Business Consultant

Investment Analyst

Market Analyst

Oil and Gas Associates

Project Manager

Research Rated Excellent and World Leading

94% of our research is classified as world-leading or internationally excellent (REF, 2014)

Our Experts

Information About Staff Changes

You will be taught by a range of experts including professors, lecturers, teaching fellows and postgraduate tutors. Staff changes will occur from time to time; please see our InfoHub pages for further information.

World Class Facilities

Aberdeen Centre for Research in Energy Economics and Finance (ACREEF)

ACREEF provides a focus for the identification and implementation of high quality research in the areas of energy economics and finance.